An Option Is a Security That Is Neither Debt nor Equity

question 128

True/False

An option is a security that is neither debt nor equity but derives its value from an underlying asset that is often another security.

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Definitions:

High-Control

Refers to a management style or organizational structure where decision-making and authority are centralized, and strict regulations guide operations and processes.

Assertive

The quality of being self-assured and confident without being aggressive, enabling clear and effective communication.

Directive

An authoritative instruction or guideline that directs the way tasks or operations should be carried out.

Transformational Leader

An individual who inspires and motivates followers to exceed their own self-interests for the good of the organization, promoting significant changes and transformations.